Defective Housing explained, and how we can help with mortgage funding!
Defective Housing is the term used for a small number of non-traditionally constructed property types that were defined in 1984 under the housing defects legislation.
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Here we take a detailed look at the different types of property with non traditional construction that may be deemed as defective housing of defective construction and explain how we can often assist when it comes to funding for a Mortgage, Remortgage, or the Right to Buy with these types of property.
Table of Contents:
What is Defective Housing and non-traditional construction types?
So, as we touched upon during the introduction, Defective Housing refers to a small number of properties that are of a non-traditional construction type under the 1984 housing defects legislation. The majority of this non-traditional construction was erected shortly after the Second World War as temporary housing to provide accommodation for the working classes.
Many of the designs were of prefabricated concrete construction, in other words, concrete panels based around a steel framework. The properties, usually built by local authorities, were comparatively inexpensive, and could be erected quickly. However, the investigations in the 1980's discovered that the steel frames and reinforcements were corroding, and causing the concrete panels to crack and disintegrate.
What are the different types of non-traditional construction property
There are a number of different types of non traditionally constructed properties that are deemed as defective housing, some of these include:
- Airey
- Unity
- Reema
- Cornish
- Wates
- Orlit
- Hawksley
Those living in them, and having the right to buy, will undoubtedly have found difficulty in raising mortgages to buy them. Even now, high street lenders tend to shy away from accepting them as suitable for mortgage purposes.
As a result of the findings into these non-traditional property defects, the National House Building Council (NHBC) set up a company in 1985, with the specific task of addressing the repairs and certification of the defective housing stock. The company was PRC Properties Limited, (PRC being an acronym for Pre-Cast Reinforced Concrete Construction).
PRC Properties Limited, as a subsidiary of NHBC was licensed to certificate the standard of structural repairs to a mortgageable standard, recognised by the conventional lenders such as banks and building societies, and to have a minimum useful life of 55-60 years.
Mortgage, Remortgage and Right to Buy funding for non - traditional construction types
Here at Shire Direct we can usually help where others may not be able to when it comes to arranging a Mortgage, Remortgage or a Right to Buy Mortgage for non traditional types of construction. Because not all defective properties were considered as being appropriate for PRC upgrading, tenants and owners have usually encountered difficulties when it comes to arranging a mortgage. Similarly, owners of timber-framed properties have often found difficulty in securing mortgages. And that's where Shire Direct can step in and help.
Over the years, Shire Direct has developed a portfolio of specialist lending schemes, and in general, we are able to arrange mortgage funding, where others usually won't.
Much of the defective housing stock is attractively located in prime area, the houses have good spacious accommodation and are often set in very large plots. As a result, the properties, once repaired, can be a very desirable investment and will usually increase significantly in price.
So, if your home is deemed as defective housing, and you would like to transform your non-traditional construction type to a conventional construction type, you'll find we can usually obtain a mortgage. Please call us on Freephone 08000 282 281 (lines are open everyday until 10.00pm), or enquire online anytime and our specialist mortgage advisors will be happy to provide you with a rapid in-principle decision. We'd love to hear from you!
The overall cost for comparison is 9.8% APR.
The actual rate available will depend upon your circumstances. Ask for a personalised illustration. APR variable and based on a usual case. Most customers are likely to receive a lower rate or the same rate as our overall cost for comparison rate - learn more about APR.
There are no upfront broker fees.
However, a fee may be charged on successful completion. An indication is that on conforming cases (straightforward applications with no or minimal adverse credit) a fee may be charged of up to 1% of the amount advanced, typically £795 and will depend on your circumstances.
For non-conforming cases (where case research and processing may be more complex due to adverse credit or unusual circumstances), a fee may be charged of up to 3% of the amount advanced, typically £1,995.
THINK CAREFULLY BEFORE
SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED
IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Adding existing debt to your mortgage will increase the repayment term and overall cost.
Are you worried and becoming stressed because you are having problems getting a mortgage or remortgage? Worry and stress no more! Here at Shire Direct we provide tailor made mortgage solutions to suit you, and can usually help with all kinds of circumstances including...
Remember, we're here to help, and would love to hear from you!
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